The recovery has occurred due to the ECB 0.50% base interest rate hike. Namely, funds are flowing into Euro denominated investments, adjusting to the new rate.
Economic Calendar Analysis
During the following week, all attention of the markets will be on the US Federal Reserve Fed Rate hike on Wednesday at 18:00 GMT. All markets will react to the hike and the following press conference of the Chairman of the Federal Reserve at 18:30 GMT.
In addition, note the European Manufacturing and Services sector Purchasing Managers Indices on Friday. The European country data will be published from 08:15 GMT up to 09:00 GMT.
EUR/USD hourly chart
A decline of the pair could look for support in the 1.0600 mark and the 50-hour simple moving average. Meanwhile, the rate did not find support in the 200-hour SMA and the weekly simple pivot point at 1.0620. Further below, note the strong support zone just below 1.0550.On the other hand, a recovery of the pair would have to reach above 1.0660 and the 100-hour SMA, prior to approaching the 1.0700 mark, the weekly R1 simple pivot point at 1.0718 and the resistance zone at 1.0740/1.0760.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair bounced off the combined resistance of the 50-day simple moving average, the 2022 December high level zone and the upper trend line of a channel down pattern. The channel captures the pair's decline since the bounce off from the 1.1000 mark.Daily chart
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Traders are almost neutral
On Friday, trader open positions were neutral, as 52% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 52% to sell the Euro against the USD.